***** Technical Analysis (Sept 7)****
This is an new TA update.
Thursday saw a moderate decline after a choppy session.
The NYSE a/d was 1/2, u/d vol was 8/15, on moderately heavy volume of 2.3B shares.
The Nasdaq a/d was 5/8, with u/d vol 5/13 (indicating another distribution day), on moderately heavy volume of 1.9B shares, due to a late selloff.
The Nasdaq/NYSE McClellan Oscillators were sharply lower at +3/-15, and indicative of a possible trend change.
Daily stochastics turned decidely negative yesterday after having been staying at very high levels, and had follow-through to the downside today, very bearish.
Gold was down sharply due to the perception that the Fed may raise rates once more because the wage growth increase reported hiked the price of the USD today.
Oil was basically flat today after having trending downward for a couple of weeks.
Below is a link to the DMI(ADX), slow stochastics and StochRSI:
stockcharts.com
See the indicators below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
Be sure to use the advantages of the "top-down" approach, a paradigm in technical trading. The bottoms-up approach refers to the idea that market timing is not used and that the goal is to select strong companies from a fundamental standpoint to buy and hold.
The "top-down" approach refers the the idea that one first ascertains the trend of the market, the strongest or weakest sectors for that trend, and the strongest or weakest stocks within those sectors, to trade, all with the trend.
For breadth momentum charts, see the chart link below and modify it:
stockcharts.com
(change this chart to $compx, weekly charts, and change the lower settings to slow stochastics, macd, and Williams%R to get the best chart)
The Nas weekly Summation-related charts are below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
The Nasdaq McClellan Oscillator and Summation Indexes are linked below:
stockcharts.com
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks, options, or ETF's as Dr.Bob is not a Registered Investment Advisor.
Information and data provided here is believed to be reliable but cannot be guaranteed to be accurate.
Always do your own research and due diligence before investing or trading. Remember that Technical Analysis can change by the day, and as such, one day's TA may not be the next day's TA interpretation.
Dr.Bob's mission is to teach Technical Analysis and demonstrate a structured approach to Market Analysis, for position and swingtrading. There are many other TA structures, strategies and systems.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL.
I can be reached at drbob512@msn.com. |
